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Exploring win-win outcomes of algorithmic management: Lessons from a laboratory experiment on worker consultation

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  • Anna Milanez

Abstract

This research project explores how worker consultation can deliver “win-win” outcomes for firms and workers in the context of the introduction of an algorithmic management system in firms. It does so using a novel research design: a laboratory experiment involving worker participants carried out in three German manufacturing firms in which a simulation of an algorithmic management system was altered to affect firm outcomes (productivity) and worker outcomes (job quality). The results show that consultations between workers, managers and works council representatives can lead to agreement on the design of a new technology that stakeholders deem to preserve firm-level productivity gains while also improving workers’ job quality. The project advances research methods for understanding the dynamics underlying worker consultation and how it can be beneficial in contexts of new technology introduction. Further research should expand the scope of this methodology (in terms of the number of participants, sectors and other countries), to substantiate the findings.

Suggested Citation

  • Anna Milanez, 2025. "Exploring win-win outcomes of algorithmic management: Lessons from a laboratory experiment on worker consultation," OECD Artificial Intelligence Papers 43, OECD Publishing.
    • Handle: RePEc:oec:comaaa:43-en
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    Keywords

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    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J8 - Labor and Demographic Economics - - Labor Standards
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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